How do YOU plan to avoid the next 2008 crash?

Put your money on the sidelines...Money market. Wait for the Fed to meet at least 3 times. Two of those three times should each have a 1/4% rise. Put money in a CD...Repeat!! When you say..."can this market get any worse", come back in.
 
Was thinking more of what you were saying. You seem to be saying..."I want to preserve capital and still profit greatly from a major bear market". Isn't there always an inverse relationship between risk and return in almost anything? I could put you into some Puerto Rican or Venezuelan bonds if you wish??
 
I have no long-term investments in the stock market. However, I trade long-term and will be shorting any bear market that occurs just as hard as I traded the bull market until Feb.

If I was long US equities I would look to get out of these positions if the S&P and its 20EMA close below the 50EMA.
 
Stops with the madness .... err I mean use stops to avoid the madness.

Retailers are always paranoid of having their stops hit lol.
 
Saltynuts said:
I think most of us believe, given how long this bull market has been going, that a potentially huge pullback, and maybe a bear market, is probably not that far around the corner. Now, I know that most of you that trade daily are generally in and out of positions relatively quickly, so would not be holding onto positions for months, watching them drop in value. So I'm not talking about yall. I'm talking about the people who have a bunch of money invested, and want to avoid the next crash, but don't want to lose out on all the potential upside from now until then.

What are yalls plans to avoid the crash? I was thinking of two things.

One is a moving average type system. Even if, overall, it might not work as good as buy and hold, it might be beneficial given how extended we are. Maybe instead of a moving average system, just setting a "stop" point in the market when you will sell (or go short), and raising that over time slowly as the market increases.

The other I've thought about is just drastically reducing the amount I have invested, and using leveraged ETFs to do this even more so, giving tons of buying power to pick up stock on the drops. For example, maybe I'd just go long like just 10% of my account value in a 3x long ETF (or maybe even better shorting 10% of my portfolio in a 3x bear ETF). This would allow me to essentially be 30% invested. Then I could say, OK, if there is a [60%] drop I want to be 100% invested, and thus be effectively at 300% invested, and still have some room to buy more on margin. Back into the numbers and just use a formulaic approach to buy more as the market goes down further.

What are yalls thoughts on how to miss the next bear market but not give up all the upside from now until then?

Thanks!
More...
how about asking your question in one short sentence?
 
Saltynuts said:
I think most of us believe, given how long this bull market has been going, that a potentially huge pullback, and maybe a bear market, is probably not that far around the corner. Now, I know that most of you that trade daily are generally in and out of positions relatively quickly, so would not be holding onto positions for months, watching them drop in value. So I'm not talking about yall. I'm talking about the people who have a bunch of money invested, and want to avoid the next crash, but don't want to lose out on all the potential upside from now until then.

What are yalls plans to avoid the crash? I was thinking of two things.

One is a moving average type system. Even if, overall, it might not work as good as buy and hold, it might be beneficial given how extended we are. Maybe instead of a moving average system, just setting a "stop" point in the market when you will sell (or go short), and raising that over time slowly as the market increases.

The other I've thought about is just drastically reducing the amount I have invested, and using leveraged ETFs to do this even more so, giving tons of buying power to pick up stock on the drops. For example, maybe I'd just go long like just 10% of my account value in a 3x long ETF (or maybe even better shorting 10% of my portfolio in a 3x bear ETF). This would allow me to essentially be 30% invested. Then I could say, OK, if there is a [60%] drop I want to be 100% invested, and thus be effectively at 300% invested, and still have some room to buy more on margin. Back into the numbers and just use a formulaic approach to buy more as the market goes down further.

What are yalls thoughts on how to miss the next bear market but not give up all the upside from now until then?

Thanks!
More...

Using forwards, swaps and 3x inverse ETF’s. Not too hard to understand.
 
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